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William Owns a Car That He Values at $3000

Question 5

Multiple Choice

William owns a car that he values at $3000.Jackson values the car at $5000.The negotiations between them for a potential trade are as follows: William offers a price to Jackson.If Jackson accepts, trade takes place at that price.If Jackson rejects no trade takes place.William keeps the car and Jackson gets a payoff of $0.What will the outcome be of the negotiation process?


A) William suggests Jackson pay $4000 and Jackson rejects the deal.
B) William suggests Jackson pay $8000 and Jackson accepts the deal.
C) William suggests Jackson pay $3000 and Jackson accepts the deal.
D) William suggests Jackson pay $5000 and Jackson accepts the deal.
E) William suggests Jackson pay $3000 and Jackson rejects the deal.

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